Weinstein Co. Studio Said to Seek $150 Million Loan

Feb. 20 (Bloomberg) -- Weinstein Co., the independent
studio founded by Harvey and Bob Weinstein, is seeking to raise
about $150 million to support film operations and retire debt,
according to two people with knowledge of the effort.

The loan may be part of a larger strategic initiative by
the New York-based studio, said one of the people, who asked not
to be identified because the talks are private. The amount may
change, the people said.

The fundraising effort coincides with a return to critical
and commercial success for the Weinstein Co., which is among the
top recipients of Oscar nominations this year for pictures
including “The Artist” and “My Week With Marilyn.” The
studio, which won best picture last year for “The King’s
Speech,” is again winning raves in Hollywood.

A new loan would be backed by the existing Weinstein
library, said the people. Union Bank is leading the
arrangements, one of the people said.

David Glasser, Weinstein Co.’s chief operating officer,
declined to comment. Jane Yedinak, a spokeswoman for San
Francisco-based Union Bank, didn’t respond to phone and e-mail
requests for comment outside of business hours.

Weinstein Co. struggled financially after the brothers left
Walt Disney Co.’s Miramax in 2005 and formed their own company.
In 2010, the studio eliminated debt by transferring ownership of
some 250 movies to Goldman Sachs Group Inc. and Assured Guaranty
Ltd., a person with knowledge of the situation said at the time.

Weinstein Co. has rights to buy back the films from
Goldman, including “The Road” and “Halloween II,” before
2016. The studio retained control of about 150 titles, including
“The Reader” and “Inglourious Basterds.” The Weinsteins
founded Miramax and sold it to Disney in 1993.

Creative Renaissance

“The King’s Speech,” co-produced by Weinstein Co., cost
$15 million to make and generated an Oscar-propelled $414
million worldwide, according to researcher Box Office Mojo.

The company has continued its creative renaissance in the
current awards season. Weinstein Co. garnered 16 Oscar
nominations for pictures such as “The Artist,” “The Iron
Lady” and “My Week With Marilyn,” according to a company
spokeswoman.

“The Artist,” up for best picture and best actor, has
taken in $27.4 million to date in the U.S. and Canada, according
to researcher Hollywood.com Box-Office. “My Week With Marilyn”
has generated $13.6 million.

In January, the Weinstein Co. announced it’s participating
in an original scripted program, “Marco Polo,” with the Starz
premium cable TV channel and Electus, run by former NBC
Entertainment head Ben Silverman.